Which of the following is an unconventional monetary policy?
A)lending to banks in unprecedented volume
B)lending to companies other than banks
C)reducing the federal funds rate to zero
D)All of these are unconventional monetary policies.

Question

Which of the following is an unconventional monetary policy?
A)​lending to banks in unprecedented volume 
B)​lending to companies other than banks 
C)​reducing the federal funds rate to zero 
D)​All of these are unconventional monetary policies.

Quizplus · Accepted Answer

All of the options listed are unconventional monetary policies. Lending to banks in unprecedented volume (also known as quantitative easing) and lending to companies other than banks (also known as credit easing) are both unconventional methods that central banks may use to inject liquidity into the economy. Reducing the federal funds rate to zero is also unconventional, but more commonly used in traditional monetary policy.

Which of the Following Is an Unconventional Monetary Policy